Florida Amendment 3 Passes

Florida Amendment 3 Passes: What the 2027–2028 Property Tax Changes Mean for Florida Real Estate

An analysis of Florida's new property tax law and its implications for homeowners, buyers, sellers, investors, and developers across Tampa Bay, St. Petersburg, Sarasota, and Miami.

By Fausto Rodriguez | The Fausto Group · Global Estates

November 8, 2026

Florida's real estate market is entering a significant period of change following the passage of Amendment 3 in the November 3, 2026, general election.

Approved with approximately 62% voter support, the constitutional amendment introduces some of the most consequential changes to Florida's property tax structure in recent years.

Beginning in 2027, qualifying homeowners will receive expanded exemptions from non-school property taxes. By 2028, that exemption will increase to $250,000 in assessed value. At the same time, the annual assessment-growth limitation for qualifying non-homestead properties, including second homes, investment properties, and commercial real estate, will decline from 10% to 5%.

For owners of luxury residences, buyers relocating to Florida, and investors evaluating long-term assets, these changes introduce important considerations for the cost of ownership and future financial planning.

The important distinction: Amendment 3 does not eliminate Florida property taxes. Its benefits depend on residency, property classification, assessed value, and local tax rates.

Understanding those differences is essential before making a real estate decision.

Florida Amendment 3: What Changes in 2027 and 2028?

Amendment 3 modifies Florida's constitutional framework for property taxation, with its first changes taking effect January 1, 2027.

The principal provisions include:

• Increasing the qualifying non-school homestead exemption to $150,000 in 2027 and $250,000 in 2028.
• Providing inflation adjustments to the larger homestead exemption beginning in 2029.
• Reducing the annual assessment increase limitation on eligible non-homestead properties from 10% to 5%.
• Establishing different exemption eligibility rules for people who were not permanent Florida residents by December 31, 2026.
• Changing the framework governing certain local government property tax expenditures and potential future exemptions.

The amendment first applies to the 2027 property tax roll. It does not change 2026 tax bills.

Florida homestead exemption: Before and after Amendment 3

The 2027 and 2028 amounts apply to qualifying homeowners who meet the applicable residency requirements. The exemption amounts are total non-school exemptions, not additional amounts added to the previous exemption.

School district taxes retain a separate $25,000 homestead exemption.

The $250,000 figure also refers to assessed value, not a reduction in the property's market value or a direct $250,000 tax credit.

How Much Could Florida Homeowners Actually Save?

The answer depends on the property's assessed value, existing exemptions, local millage rates, and the owner's eligibility.

To understand the potential financial effect, consider an example using published tax rates in the City of Tampa.

Example: Property Tax Changes for an $800,000 Assessed Home in Tampa

According to the Hillsborough County Property Appraiser, the City of Tampa's final 2026 total property tax millage rate is 19.7353 mills.

Of that amount, 6.3340 mills are attributable to school district taxes, leaving 13.4013 mills in non-school property taxes.

For a hypothetical qualifying primary residence with an assessed value of $800,000, the non-school property tax calculation would look as follows:

Potential difference: approximately $2,661 annually by 2028 compared with the 2026 exemption structure.

These figures are illustrative calculations prepared using Hillsborough County's final 2026 millage rates. They assume an unchanged $800,000 assessed value, unchanged non-school tax rates, full eligibility for the relevant exemptions, and no additional exemptions or adjustments.

They are not forecasts of actual 2027 or 2028 tax bills. Future assessments and millage rates may differ, and school district taxes and non-ad valorem assessments are excluded.

Nevertheless, the comparison demonstrates the significance of the expanded exemption for qualifying Florida homeowners.

An important consideration for luxury homeowners: A residence assessed at $2 million does not automatically receive a larger homestead exemption than a residence assessed at $800,000.

Where both properties qualify for the full $250,000 exemption, the nominal exemption is the same. Differences in actual taxes will continue to depend on assessed value, tax jurisdiction, and other applicable provisions.

This is particularly relevant when evaluating high-value properties whose market prices may be substantially greater than their taxable assessed values.

Sources: Hillsborough County Property Appraiser, Final 2026 Millage Rates; Florida Department of Revenue, November 5, 2026.

What Amendment 3 Means for Buyers Relocating to Florida

For prospective buyers moving to Florida from New York, California, and other states, the amendment introduces a potentially important residency distinction.

Individuals who maintained permanent Florida residency by December 31, 2026, may qualify for the larger homestead exemption when they establish an eligible homestead.

Those who were not permanent Florida residents by that date generally begin with a smaller non-school exemption of $50,000, subject to subsequent inflation adjustments.

Under the new constitutional provisions, these homeowners become eligible for the expanded exemption beginning in their fifth year of receiving the homestead exemption.

For example, a person establishing their first eligible Florida homestead in 2027 would generally become eligible for the larger exemption in 2031, assuming continuous qualification and no applicable change in the rules.

The amendment also allows a county or municipality, beginning in 2030, to shorten that five-year requirement for a critical local need through the specified two-thirds governing-body vote.

The residency-related provisions are subject to constitutional limitations, and implementing guidance is still being developed.

For relocation buyers, the important question is no longer simply what property they intend to purchase, but when they established Florida residency and when their homestead exemption begins.

Permanent residency and homestead qualification are separate legal considerations. Purchasing a Florida residence alone does not establish that a buyer qualifies for the larger exemption.

Before purchasing, buyers should consult the appropriate county property appraiser and tax professional to understand their eligibility and potential property tax exposure.

What Amendment 3 Means for Florida Luxury Homebuyers and Sellers

The expanded homestead exemption may improve the long-term cost of owning a qualifying primary residence, including luxury homes, waterfront estates, and high-end condominiums.

However, the amendment does not eliminate one of the most frequently misunderstood aspects of Florida real estate transactions: a buyer's future property taxes may be substantially different from the seller's current tax bill.

For buyers

Florida property assessments generally reset to just value following a qualifying change of ownership, subject to applicable exceptions and portability provisions.

A waterfront estate that has been owned and homesteaded for several decades may carry an assessed value significantly below its present market value.

When that property sells, the new owner's assessed value may increase, potentially offsetting part of the benefit of the new exemption.

Buyers should therefore examine:

• The property's anticipated assessed value following purchase.
• Whether it will qualify as a primary residence.
• The buyer's residency status and exemption eligibility.
• Applicable school and non-school property tax rates.
• Insurance, condominium or homeowners association expenses, and special assessments.

For luxury condominiums and branded residences, these distinctions can be particularly important because two otherwise comparable residences may carry very different annual ownership costs based on their assessment history and use.

For sellers

The expanded homestead exemption may improve affordability for qualifying owners who intend to remain in their properties.

However, sellers should not assume the amendment will automatically increase property values or accelerate a sale.

Market performance will continue to depend on available inventory, comparable transactions, financing conditions, location, and buyer demand.

A well-informed marketing strategy should communicate a property's ownership costs accurately without suggesting that a seller's particular tax advantages automatically transfer to the buyer.

Does Amendment 3 Benefit Florida Investors and Second-Home Owners?

Yes, potentially—but through a different provision.

Investment properties, seasonal residences, and vacation homes generally do not qualify for the expanded primary-residence homestead exemption.

Instead, eligible non-homestead properties benefit from the reduction in the annual assessment-growth limitation from 10% to 5% for non-school property taxes.

For investors holding real estate over multiple years, that change may provide greater predictability in financial planning.

Example: A $2 Million Investment Property

Consider a qualifying non-homestead property with a prior-year capped assessed value of $2 million.

Assume that its just value increases by 12%, ownership remains unchanged, no qualifying improvement triggers reassessment, and the annual assessment limit is the controlling factor.

Under the previous 10% limitation, the non-school assessed value could increase to $2.2 million.

Under the new 5% limitation, it would be capped at $2.1 million.

That represents a $100,000 difference in assessed value for non-school taxes.

At an illustrative 10-mill non-school tax rate, the difference would equal approximately $1,000 in annual property taxes.

The example is not a guarantee of savings. Actual outcomes depend on eligibility, just value, prior assessments, reassessment events, and future tax rates.

Importantly, the 5% restriction does not limit a property's total annual tax bill to a 5% increase. School district assessments remain outside the non-homestead cap.

The Investment Perspective

For long-term investors, the revised assessment cap may be especially relevant when evaluating:

• Luxury residential rental properties.
• Seasonal and vacation homes.
• Small multifamily residential properties.
• Commercial real estate.
• Long-term residential and mixed-use investment holdings.

The practical benefit will vary by asset and ownership structure.

For example, the lower cap provides no additional growth limitation benefit in a year when an eligible property's assessed value would otherwise rise by less than 5%.

Likewise, a new acquisition that triggers reassessment must be evaluated using its anticipated post-acquisition tax basis rather than the seller's existing assessment.

Investors should distinguish between acquisition-year expenses and projected stabilized operating costs when evaluating net operating income, cash flow, and investment returns.

What Amendment 3 Means for Florida Real Estate Developers

Developers of luxury condominiums, waterfront communities, branded residences, and mixed-use projects should consider the amendment when assessing land acquisitions, project feasibility, and long-term investment structures.

The reduced non-homestead assessment-growth limitation may benefit certain properties retained over time.

However, new construction, qualifying improvements, and ownership transfers may result in reassessment. The revised cap does not automatically shield new development from increases associated with newly created value.

For condominium developments, it is also important to distinguish between developer-held inventory, individually owned units, and residences used as qualifying primary homes.

The amendment may affect different owners within the same building differently.

Developers and sales teams should therefore exercise care when communicating future property tax expenses to prospective purchasers.

Beyond individual properties, the amendment's anticipated impact on local government revenues introduces additional considerations for infrastructure, public services, and municipal investment.

These factors reinforce the need for comprehensive project underwriting and accurate buyer-facing financial information.

Explore The Fausto Group's Developer Advisory & Sales Services

How Amendment 3 Affects Tampa, St. Petersburg, Sarasota, and Miami Real Estate

Although Amendment 3 applies statewide, its practical effect will differ depending on a property's location, tax jurisdiction, assessment history, and intended use.

Tampa & Hillsborough County

In Tampa, qualifying homeowners in Davis Islands, Hyde Park, Beach Park, Palma Ceia, and other South Tampa neighborhoods may benefit from the expanded non-school homestead exemption.

For owners considering luxury condominium properties along Bayshore Boulevard or within Water Street Tampa, the distinction between primary and seasonal ownership is particularly important.

At The Ritz-Carlton Residences, Tampa, for example, a qualifying primary-residence owner may receive the expanded homestead exemption, whereas an owner using a comparable residence exclusively as a second home generally would not.

The luxury branding or building itself does not determine homestead eligibility.

The owner's legal qualification and use of the residence are what matter.

St. Petersburg & Pinellas County

For St. Petersburg homeowners, the amendment may affect the long-term cost of ownership across waterfront neighborhoods such as Snell Isle, Venetian Isles, and the Old Northeast, as well as Downtown St. Petersburg's luxury condominium market.

Owners of established primary residences may qualify for the expanded exemption, while investors and seasonal owners may instead benefit from the reduced non-homestead assessment cap.

For buyers considering newer branded residential developments, including the Waldorf Astoria Residences St. Petersburg, projected property taxes should be evaluated carefully, particularly where construction or future unit transfers may affect assessed values.

Sarasota & Longboat Key

Sarasota's luxury real estate market includes a substantial mix of permanent residents, seasonal homeowners, investors, and buyers relocating from other states.

The implications of Amendment 3 will differ across property types in Bird Key, Harbor Acres, Downtown Sarasota, Siesta Key, St. Armands, and Longboat Key.

A full-time resident occupying a qualifying primary residence may benefit from the increased exemption, while an owner maintaining the property strictly as a vacation home may benefit instead from the lower non-homestead assessment-growth limitation.

For Longboat Key buyers, the property's county jurisdiction deserves particular attention because the town extends across Sarasota and Manatee counties.

Explore Sarasota & Longboat Key Luxury Real Estate

Miami & Miami Beach

In Miami-Dade County, the amendment introduces important considerations for both luxury primary residences and investment properties.

Buyers evaluating waterfront estates in Coconut Grove and Coral Gables, luxury condominiums in Brickell, or oceanfront residences in Miami Beach, Bal Harbour, Surfside, and Sunny Isles Beach should distinguish between primary-residence eligibility and second-home ownership.

The five-year exemption provision is also relevant to buyers relocating from other states or internationally.

For established Florida residents, the expanded exemption may reduce certain ownership costs. For new residents, the benefit may not become available immediately.

Meanwhile, owners of qualifying rental properties and second homes may experience slower annual growth in their non-school assessed values.

Miami-Dade County has also identified potentially significant reductions in local property tax revenue, highlighting the importance of monitoring future millage rates and government budget decisions.

Explore Miami Beach Luxury Real Estate

What Stays the Same After Amendment 3?

Despite the significant changes, several established features of Florida property taxation remain.

Save Our Homes remains in effect. Qualifying homestead properties retain the existing annual assessed-value increase limitation of 3% or the Consumer Price Index change, whichever is lower.

Homestead portability remains available. Qualifying homeowners may continue to transfer eligible Save Our Homes assessment benefits when establishing a new Florida homestead, subject to applicable rules.

School district property taxes continue. The expanded homestead exemption does not eliminate school taxes.

Ownership transfers can trigger reassessment. Buyers should not rely on a seller's existing property tax bill as a projection of their own.

Homestead eligibility remains tied to residency and property use. Simply owning a home in Florida does not automatically qualify a person for the exemption.

Insurance, association fees, and special assessments remain separate expenses. Amendment 3 does not eliminate these financial obligations.

Local property tax rates may still change. Counties, municipalities, and other taxing authorities establish applicable millage rates under Florida law.

These distinctions are particularly relevant in the luxury market, where total ownership costs can extend well beyond property taxes.

What Is the Broader Financial Impact on Florida?

Amendment 3 may provide substantial property tax relief, but it also changes the revenue available to certain local governments.

According to projections from Florida's Revenue Estimating Conference, as summarized by Florida TaxWatch, the amendment is expected to reduce local non-school property tax revenue by approximately $45.84 billion over five fiscal years, from 2027–2028 through 2031–2032, compared with the previous-law baseline.

These are estimates, not guaranteed reductions in spending or individual taxpayer savings.

The long-term impact will depend on future property assessments, tax rates, local government decisions, and economic conditions.

For property owners and developers, potential changes to municipal services, infrastructure investment, and local fees deserve attention.

However, the amendment does not establish that any particular county will increase rates, reduce services, or introduce new fees.

Those decisions remain dependent on future local budget processes.

Florida Amendment 3: Frequently Asked Questions

Did Florida Amendment 3 pass in November 2026?

Yes. Florida voters approved Amendment 3 on November 3, 2026, with approximately 62% support. The amendment establishes expanded homestead exemptions and a lower annual assessment-growth limitation for qualifying non-homestead properties.

When does Amendment 3 take effect in Florida?

January 1, 2027. The amendment first affects the 2027 property tax roll. It does not change 2026 property tax bills.

Will Florida homeowners pay no property taxes after 2028?

Not necessarily. Although the non-school homestead exemption increases to $250,000 in 2028 for qualifying homeowners, school district property taxes remain. Owners with taxable assessed values exceeding the applicable exemption may also continue owing non-school taxes.

Will a $1 million Florida home receive the full $250,000 exemption?

Potentially. If the property qualifies for the expanded homestead exemption and its assessed value is at least $250,000, the full exemption may apply to its non-school taxable value. The property's $1 million market value alone does not determine eligibility or tax savings.

Does Amendment 3 apply to luxury condominiums and branded residences?

Yes, the applicable property tax rules can apply to condominium residences, including luxury and branded properties. The distinction is whether the unit qualifies as a primary homestead residence or is classified as non-homestead property.

Does Amendment 3 apply to Florida rental properties?

The expanded homestead exemption generally does not apply to rental properties that are not qualifying primary residences. However, eligible rental properties may benefit from the reduced 5% annual assessment-growth limitation for non-school taxes.

Can someone moving to Florida in 2027 receive the $250,000 homestead exemption immediately?

Generally, no. Individuals who were not permanent Florida residents as of December 31, 2026, begin with a smaller exemption and become eligible for the expanded exemption beginning in their fifth year of homestead exemption, subject to applicable constitutional provisions and future implementation guidance.

Does Amendment 3 guarantee that Florida property values will increase?

No. While changes in ownership costs may influence purchasing decisions, the amendment does not guarantee appreciation, stronger demand, or faster sales. Property values will continue to depend on market-specific fundamentals.

The Fausto Group Perspective: A More Informed Approach to Florida Real Estate

Amendment 3 represents a meaningful shift in Florida's property tax framework, but its significance extends beyond the exemption amounts themselves.

For homeowners, it may provide greater long-term affordability. For buyers, residency and tax reassessment require closer examination. For investors, the revised non-homestead assessment cap offers another consideration in acquisition and holding strategies. And for developers, the amendment introduces additional factors into project underwriting and buyer education.

The opportunity lies in understanding how these changes intersect with the specific property, market, and ownership strategy.

At The Fausto Group | Global Estates, our approach to luxury real estate extends beyond the transaction itself.

Led by Fausto Rodriguez and affiliated with BARNES International Realty in Florida, our team advises buyers, sellers, investors, and developers across Tampa Bay, St. Petersburg, Sarasota, Miami, and surrounding coastal markets.

Our practice encompasses distinguished waterfront estates, luxury condominiums, branded residences, new developments, and significant residential investment opportunities.

Whether evaluating an acquisition, considering a sale, or exploring a move to Florida, informed real estate decisions begin with a clear understanding of both market value and the broader economics of ownership.

For a confidential conversation regarding Florida luxury real estate, connect with The Fausto Group.

The Fausto Group | Global Estates

www.faustorealestate.com

Sources & References

This article incorporates legislation, official state guidance, and published property tax information available as of November 8, 2026.

1. Florida Department of Revenue — Amendment 3 Informational Bulletin, November 5, 2026
2. Florida Legislature — Constitutional Amendment 3, CS/HJR 1-F
3. Hillsborough County Property Appraiser — Final 2026 Millage Rates
4. Leon County Property Appraiser — Amendment 3 and Homestead Exemption Guidance
5. Florida TaxWatch — Florida Property Tax Resource Center

Disclaimer: This article is provided for informational purposes only and does not constitute legal, tax, or financial advice. Future tax rates, administrative procedures, and implementing legislation may affect the application of Amendment 3. All financial illustrations are hypothetical and should not be interpreted as individualized tax estimates. Consult the appropriate county property appraiser and qualified tax or legal advisors for guidance concerning specific properties or ownership circumstances.